Banco BPI SA advanced the most in almost a month after Portugal’s fifth-biggest bank approved a 1.5 billion-euro ($1.9 billion) recapitalization plan to bolster its capital ratios.
The stock climbed as much as 6.6 percent, the biggest gain since May 8, and traded 5.3 percent higher at 40 euro cents at 10:51 a.m. in Lisbon trading.
“BPI’s recapitalization plan was in line with our expectations and will strengthen the bank’s financial position,” Pedro Oliveira, a trader at Go Bulling, said by phone.
The lender plans a capital increase of 200 million euros, for which shareholders will have a right of preference, Oporto-based BPI said today in a regulatory filing. The plan includes issuing 1.3 billion euros of debt instruments that will be subscribed to by the Portuguese state.
Portugal committed to inject 3.5 billion euros in Banco Comercial Portugues SA out of more than 6.6 billion euros it plans to use to recapitalize BCP, BPI and state-owned Caixa Geral de Depositos SA, the Finance Ministry said today in a statement posted on the securities regulator’s website.
Banco Comercial shares fell as much as 2 percent to 9.8 euro cents in Lisbon trading.
“Banco Comercial’s capital increase is higher than we expected and is weighing on the bank’s shares,” said Oliveira.